ຂ້ອຍຄວນຢຸດການລົງທຶນຄືນເງິນປັນຜົນບໍ?

Is there a point at which I should stop reinvesting stock dividends and invest the money or save the cash?

- ບໍ່ມີຊື່ສຽງ

Many financial experts recommend that you reinvest dividends most of the time – and I’m inclined to agree. The process is typically automated, doesn’t incur any fees and gives your holdings a little (or a lot) of extra oomph.

For example, if you had invested in Microsoft stock 10 years ago and consistently reinvested your dividends since then, your holdings would be worth 63% more today than if you hadn’t reinvested. That’s a lot of oomph.

Still, there is hardly ever a one-size-fits-all answer to any investment question. Accordingly, it may be wiser in some situations to just take the money rather than reinvest it.

Here’s what investors should know about when it makes sense not to reinvest dividends.

A financial advisor can help you finetune your investment strategy. Find a local advisor today.

3 Good Reasons to Not Reinvest Dividends

While reinvesting dividends will almost always give your stock holdings a shot in the arm, sometimes your big-picture needs as an investor will trump those potential benefits.

Here are three common examples of situations in which it makes sense to not reinvest dividends:

1. Balancing your portfolio. Reinvesting dividends will increase your position in the company paying them. If that company already represents, say, 5% or more of your portfolio, it may be wise to avoid getting too concentrated and not reinvest your dividends.

2. Phasing out risk. In many cases, it’s a good idea to make your investments less aggressive over the years. If you’ve been reinvesting dividends, diverting that cash toward less aggressive assets (like ພັນທະບັດ) can be a good way to “risk-off” smoothly.

3. ລາຍ​ໄດ້. Remember: Money is ultimately for spending, and sometimes you just need the cash. There’s nothing wrong with that, especially if you’re in or approaching retirement when short-term income becomes a bigger priority than long-term growth.

ເລື່ອງຍັງສືບຕໍ່

1 Bad Reason to Not Reinvest Dividends

Some people will say that you shouldn’t reinvest dividends if the underlying stock isn’t performing well. Here, however, I completely disagree.

Remember, one of the main benefits of dividends is that they pay out regardless of the stock’s recent price movement. This indicates that the company paying them has an established track record of earning profits – a clear sign that the company is fundamentally worth investing in.

In other words, even if the share price is in a slump, odds are it will recover eventually. So if you’re going to hold onto the stock anyway, and therefore keep receiving dividends, why not keep getting the extra boost from reinvesting them?

As I like to remind my clients, we invest in companies, not stocks. The share price is only one indication of a company’s value, and sometimes a very unreliable one. That truth is often forgotten and always important.

ສິ່ງທີ່ຕ້ອງເຮັດຕໍ່ໄປ

If you’re receiving dividends and are unsure of what to do with them, remember the fundamentals.

Deciding what to do with your dividends boils down to answering three questions:

1. Am I confident in the company’s underlying health?

2. Can I afford to reinvest the dividend income right now?

3. Is increasing my position in this company consistent with my overall ຍຸດທະສາດການລົງທືນ?

If the answer to any of these questions is “no” or “I’m not sure” then you may want to spend that dividend cash elsewhere.

If you can answer all of them with “yes,” however, then let the reinvestment machine keep doing its thing.

ການລົງທຶນແລະການວາງແຜນການບໍານານ

• ຖ້າທ່ານມີຄໍາຖາມສະເພາະກ່ຽວກັບສະຖານະການລົງທຶນແລະການບໍານານຂອງເຈົ້າ, a ທີ່ປຶກສາດ້ານການເງິນສາມາດຊ່ວຍໄດ້. ຊອກຫາທີ່ປຶກສາດ້ານການເງິນທີ່ມີຄຸນວຸດທິ, ບໍ່ຈໍາເປັນຕ້ອງຍາກ. ເຄື່ອງມືທີ່ບໍ່ເສຍຄ່າຂອງ SmartAsset ກົງກັບທີ່ປຶກສາດ້ານການເງິນເຖິງສາມຄົນທີ່ໃຫ້ບໍລິການໃນພື້ນທີ່ຂອງເຈົ້າ, ແລະເຈົ້າສາມາດສໍາພາດທີ່ປຶກສາຂອງເຈົ້າກົງກັນໂດຍບໍ່ມີຄ່າໃຊ້ຈ່າຍເພື່ອຕັດສິນໃຈວ່າອັນໃດທີ່ເຫມາະສົມສໍາລັບເຈົ້າ. ຖ້າທ່ານພ້ອມທີ່ຈະຊອກຫາທີ່ປຶກສາທີ່ສາມາດຊ່ວຍໃຫ້ທ່ານບັນລຸເປົ້າຫມາຍທາງດ້ານການເງິນຂອງທ່ານ, ເລີ່ມຕົ້ນດຽວນີ້.

• For more about dividend investing ກວດເບິ່ງບົດຄວາມນີ້ ກ່ຽວກັບວິຊາດັ່ງກ່າວ.

• ໃນຂະນະທີ່ເຈົ້າວາງແຜນລາຍຮັບໃນການບໍານານ, ຮັກສາຕາກ່ຽວກັບການປະກັນສັງຄົມ. ໃຊ້ ເຄື່ອງຄິດເລກປະກັນສັງຄົມຂອງ SmartAsset ເພື່ອໃຫ້ໄດ້ຮັບຄວາມຄິດຂອງຜົນປະໂຫຍດຂອງທ່ານສາມາດເປັນແນວໃດໃນການບໍານານ.

Graham Miller, CFP® ເປັນຖັນແຖວການວາງແຜນການເງິນຂອງ SmartAsset ແລະຕອບຄຳຖາມຂອງຜູ້ອ່ານໃນຫົວຂໍ້ການເງິນສ່ວນຕົວ. ມີ​ຄໍາ​ຖາມ​ທີ່​ທ່ານ​ຕ້ອງ​ການ​ຕອບ​? ອີເມວ [email protected] ແລະຄໍາຖາມຂອງເຈົ້າອາດຈະຖືກຕອບໃນຖັນໃນອະນາຄົດ.

Please note that Graham is not a participant in the SmartAdvisor Match platform.

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